Green Chemicals plc - Working capital loan from a related party
19 Feb 2008
The Chairman’s Statement, issued on 3 December, which formed part of the interim results for the six months to 30 September 2007, informed shareholders and the market that the Company had provisionally arranged to place new ordinary shares with certain existing shareholders, in order to provide the additional funds required to accelerate its development. The independent Directors of green chemicals plc (Dr. A. E. Bayliff, S. M. Winston, FCA, Prof. D. M. Lewis and Dr. R. H. Adams) have determined in consultation with their advisers and the concerned shareholders that such a share placing would not have been in the Company’s best interests, as it would have entailed substantial third-party costs at a stage when any additional funds raised would ideally be applied wholly to the working capital account of the business.
It has accordingly been agreed with IP2IPO Limited (“IP2IPO”), a subsidiary of IP Group plc (“IP Group”), that IP2IPO shall lend to the Company, on an unsecured basis, the amount of GBP 250,000. IP Group is also the parent company of Techtran Limited and of Top Technology Ventures Limited, manager of the IP Venture Fund. Techtran Limited and the IP Venture Fund collectively control approximately 30.52 per cent of the issued ordinary share capital of the Company; this is therefore a related party transaction within the meaning of the PLUS Rules.
The loan is for an unfixed term, repayable at any time after drawdown either at the request of IP2IPO or at the option of the Company, and bears interest at a rate of seven per cent per annum for the first six months and thereafter at nine per cent per annum. The independent Directors and the Company’s advisers consider that the terms are fair and commercial and that they in no way disadvantage the Company relative to the probable cost of any alternative sources of capital presently available to it.
Commenting on the loan agreement Chief Executive Officer, Dr. Andrew Bayliff, said: “The independent Directors are pleased that this loan capital has been made available through a member of an important and supportive shareholder group, thereby further demonstrating that group’s belief in and commitment to the Company.”
For further information please visit www.greenchemicalsplc.com or contact:
Andrew Bayliff, Stephen Winston
green chemicals plc
Tel: +44 870 8354351
